Clearing your debts is not a cinch. It is a long haul, too, especially if you are up to your neck in debt. It is normal to be all shaken up when you are to settle a hefty outstanding balance, and you do not have enough money to do that in one fell swoop. The first thing you need to do is to stop overspending to prevent your budget from blowing up. In the end, you will have to retain more and more cash in your pocket to speed up debt payments.
You are all told to create a budget, keep setting aside money for a rainy day, pay more than the minimum payment and so forth, but this article will tell you a couple of mind tricks to get out of debt sooner rather than later. Psychology plays an imperative role in feeling your situation the way it is.
Here are some of the tricks you can play on yourself to keep the momentum going:
How do you manage your work when you have household chores? From doing dishes to doing laundry and from cooking to wiping, it becomes difficult to decide how to manage your time in a way you do not get zonked at the end of the day. To keep yourself motivated, you will start with smaller activities such as dusting and dishes, and then you can focus on cooking and laundry.
Follow the same approach when you are to clear debts. Of course, debt is scary, especially if you have to pay off an inordinate amount of outstanding sum. As the debt amount reduces, you will certainly feel motivated. The sooner it drops, the better it is. Therefore, many borrowers are suggested using a snowball method.
With this method, you can start clearing a small amount of debt. It may not be as efficient as paying high-interest debts, but you will trick your mind into believing that you have paid off some of the debts in full.
When you see the number of debts to be paid off has been reduced, you will naturally feel motivated and less worried. This psychological benefit might not be the case with the debt avalanche method. The amount of debt will be reduced, and you will notice the number of debts is still the same. You might feel like you are not going anywhere. The debt may continue to haunt you.
Have you ever wondered why you go to the same salon for a haircut or the same local supermarket when there are a lot more out there? Convenience is the answer. When you go to a supermarket on and on, you get accustomed to it. Your brain automatically knows what is lying where, and being on auto-pilot mode, you get there to pick your favourite item off the shelf.
This is what most supermarkets and vendors take advantage of. They try to create a habit in you of visiting their stores by offering you a reward a few times, and then they stop it. Even so, you do not stop going to them because you are habitual of it.
You should use this technique to improve your finances and avoid relying on debts. It is no wonder that people rely on small personal loans online because of a lack of a rainy-day fund. As you have fallen into debt, somehow, it could be a factor. Unexpected expenses can crop up at any time, and therefore, you must have an emergency cushion.
Try to inculcate a new habit in yourself. Start stashing away money every month. It does not have to be a large amount of money. Just find out how much you can save without struggling with your household budget. Stick to it. Once you take it in your stride, you will automatically pay yourself first as soon as you receive your paycheque. As a result, you will be less reliant on debt down the line.
Emotions play a huge role in your spending habits. Whether you are reeling in excitement or in shock, you start spending money on frivolous purchases to divert your mind. Once you get into the habit of impulsive buying, your brain is immediately triggered when you go through the same sort of phase, and that is because the dopamine hormone is released in your brain, which makes you feel happy. In order to feel that level of pleasure, every time, you will overspend.
You should control your brain instead of letting it control you. It is tough, but it is not impossible. You should force yourself not to spend money when you are not in a good frame of mind. Divert your mind. You can take a stroll down the street to let up your anxiety, watch your favourite show that makes you feel happy, or play with your kids or pet.
If you still feel like going out and splashing money, you should create a list of items you want to buy. Trick your mind into believing that you will buy these items at the weekend. Just make an excuse to yourself to put it off. The next day, when you revisit that list to ask yourself if you still want to buy those items, the answer will be no because, by that time, you must have come out of that frame of mind.
The aforementioned mind tricks can be a way out of debt, but remember that you may still need to borrow money. Make sure you borrow money from a reputed direct lender like MyCreditBucks, and do not borrow more than your affordability. The consequences of falling behind on payments will be far-reaching, so be careful with the borrowing sum.
